06 February 2020
Mortgage and Property Report February 2020
Welcome to the first 2020 edition of the Mortgage and Property Report. In this issue, we look at the impact the government’s Help to Buy (HTB) scheme has had on the UK housing market. In particular, we examine how lenders, customers, and housebuilders have benefited or been hurt by the scheme, as well as what the impending end of the HTB Equity Loan scheme means for each group and what, if anything might come in its place.
- The HTB Equity Loan scheme has been one of the UK government’s most popular housing initiatives and has helped thousands of aspiring homeowners take their first step on the property ladder or purchase a larger property than they otherwise could have
- Critics argue that it was too widely available and that developers have been its biggest winners, at the expense of homeowners and the government
- The scheme is scheduled to be replaced by a more restricted version in 2021, before closing in 2023, leaving a gap in the market which lenders and some new Fintech companies are trying to fill through private initiatives